By Francis Ogwo
The Association of Bureau De Change Operators of Nigeria (ABCON) and Forex speculators have been warned to desist from pressurizing the value of the naira through their activities, or they might lose their money.
This warning was made by the president of ABCON, Alhaji Aminu Gwadabe on Wednesday, in Lagos, while adding that licenced Bureaux De Change (BDCs) from the Central Bank of Nigeria are set to commence full operations and that CBN will commence sales of dollars to operators.
Gwadabe noted that when the CBN lifts the moratorium on sales of dollars to BDCs; airports reopening and lockdown easing globally, they are pointers to an improvement in the flow of dollars in the economy.
According to him, the dollar sales to BDCs will boost the exchange rate as the dollar is currently valued at N461to a dollar at the parallel market.
“The return of over 5,000 BDCs to the forex market will add great strength to the Naira and lead to major capital losses for forex speculators.
“It happened in 2016 and will happen again in 2020. The return of the BDCs will immediately boost Naira recovery and put the enemies of the economy to shame.
“We are committed to the CBN’s exchange rate stability and will take all necessary steps within set rules and regulations to keep the Naira stable,” he added.
Speaking further, Gwadabe noted that some of the benefits of the BDCs return to the forex market include: eradication of speculators, control the inflation rate already rising, enhance productivity and employment, promote discovery of price, encourage market transparency and boost the competitiveness of the market.
He also noted that the recent activities in the industry economy of China has boosted the demand for Nigeria’s crude oil which will improve it’s sales in China with a long term benefit of boosting dollar earnings.
Gwadabe further stressed that under the Rapid Financing Instrument (RFI) of $3.4billion International Monetary Fund (IMF) loan to lift Nigeria’s balance of payment from COVID-19 pandemic, the CBN has created and enhanced fiscal buffers, expressing confidence that the loan which had been disbursed, would strengthen Nigeria’s dollar reserves and “financing to the budget for targeted and temporary spending increases”.
It would also “help in containing and mitigating the economic impact of the COVID-19 pandemic and of the sharp fall in international oil prices thereby putting the Naira in a better standing against other currencies,” Gwadabe added.
